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THE MAIN CHARACTERISTICS OF BELIZE COMPANY

GENERAL
Type of entity
IBC
Type of law
Common
Shelf company availability
Yes
Our time to establish a new company
1 day
Minimum government fees (excluding taxation)
USD 100
Corporate Taxation
Nil
Double taxation treaty access
No
SHARE CAPITAL OR EQUIVALENT
Standard currency
USD
Permitted currencies
Any
Minimum paid up
No minimum required
Usual authorised
USD 50,000
DIRECTORS
Minimum number
One
Local required
No
Corporate Directors permitted
Yes
Location of meetings
Anywhere
Publicly accessible records
No
SHAREHOLDERS
Minimum number
One
Publicly accessible records
No
Location of meetings
Anywhere
COMPANY SECRETARY
Required
Optional
Local or qualified
No
ACCOUNTS
Requirement to prepare
Yes
Audit requirements
No
Requirement to file accounts
No
Publicly accessible accounts
No
OTHER
Requirement to file annual return
No
Change in domicile permitted
Yes

INTEREST OF THE JURISDICTION OF BELIZE

Advantages of a company in Belize

  • Corporate tax – 0%.
  • No publicly accessible records.
  • Account filing is not required.
  • Very effective cost.
  • Speedy incorporation time.

Disadvantages of a company in Belize

  • The lack of public registers can make proof of ownership difficult.
  • Not recommended for high profile trading operations.

PRESENTATION OF JURISDICTION

Belize was called British Honduras in former days; however, since 1981 it became an independent democratic Commonwealth country located on the Caribbean seaboard of Central America, being of springboard to optimization for several companies around the world. Belize is a member of the UN, the IMF, the World Bank and the Caribbean Development Bank.

The area of Belize is about 23 thousand km², and the population is about 380 thousand people. It borders with Guatemala and Mexico.

Belize is a parliamentary democracy. The head of state is the Queen of Great Britain, and her representative is the Governor-General. The Parliament consists of the Senate and the House of Representatives, which has 31 members elected by the population for a period of 5 years. In the Senate, 12 members are appointed by the Governor-General for a period of 5 years. Executive power is exercised by the government headed by the Prime Minister. In general, Belize’s political system corresponds to the British model. This happened historically, because for a long time Belize had been a British colony.

The legal system is also based on English Common Law. Economic legislation is aimed at attracting investment in this small island country.

The judicial system consists of magistrate courts, the Supreme Court and the Court of Appeal. The highest court is the Caribbean Court.

The incorporation procedure and types of companies

Legislation of Belize allows conducting business in various forms. It can be a private company, a joint venture, a limited company, an International Business Company, partnerships and others. The business environment in Belize is characterized positively, there is a well-developed infrastructure, financial services, and there is no bureaucracy. The state supports the flow of investment in the country, especially in the agrarian regions. Today, Belize is an offshore zone, which is able to attract entrepreneurs from around the world.

01. Private Limited Company

Private Limited Company is a structure, which is mainly used for holding activity, trade, e-commerce, etc. This form of the company has recently appeared in the legislation, but the number of such companies is increasing now. In order to create a PLC at least 1 shareholder and 1 director are required. There is a possibility to involve only one person, no matter natural or legal. To have a registered office and a special registration agent are compulsory conditions.

02. International Business Company

The Belize International Business Company (IBC) is the most chosen form of offshore corporate structure. The reason is that the IBC structure (ruled by International Business Company Act, 1990) can conduct trading and business outside Belize and can also carry some of its activities within Belize jurisdiction. These IBCs are the key for a diversity of tax planning optimization and international investment purposes.

The main advantage of IBC is the absence of taxation for this type of company. Minimum 1 shareholder and 1 director must participate in the incorporation process. Further, the company may be created in 2-3 days. The registration and management process is simple, without any bureaucratic delays. There are no requirements for the presence of a secretary and the minimum amount of startup capital. The main feature of this form of business organization is that IBC cannot conduct business in Belize.

Taxation

  • The tax system of Belize has two levels: municipal and national. The rate of income tax can be from 1.75% up to 25% and it usually depends on the field of activity. Corporate taxes are paid by companies, which operate on the territory of the country and receive income of more than 75 thousand dollars.

  • However, offshore companies are completely exempt from corporate income tax. Companies registered under the Belize Law on the International Business Company pay an annual budget charge of $ 100 (for companies with a capital of less than $ 50,000) and are not subject to corporate taxation, provided there is no activity in the jurisdiction. IBC does not pay tax on dividends, interest, royalties, capital gains.

  • In addition, there is no currency control and no value added tax in Belize. Such a tax policy has turned Belize into an extremely attractive offshore jurisdiction that allows to optimize revenues and reduce the tax burden for companies around the world.

Bank system and economy overview

The economy of Belize is characterized as open, based on the private sector. The basis of the economy is agriculture, tourism and services. Agriculture is represented by the cultivation of tropical fruits (bananas, papaya, citrus fruits), sugar production, and seafood. The main trading partners of Belize are the USA, Mexico, the countries of Central and Latin America, China, the countries of Europe.

Tourism remains the most important sector of the economy due to the tropical climate, geographical location in the Caribbean region, English-speaking population, which attracts many tourists every year. To attract investments in Belize, a free trade zone was established in the city of Corozal, which allowed to conduct business with the countries of the Caribbean, the USA and Europe without hindrance.

The financial system of Belize is convenient for offshore activities. The central bank of Belize is the main bank of the country, provides banking services to the government, issues currency, regulates the activities of commercial banks. The banking system of Belize is known all over the world for a high level of confidentiality of data and banking secrecy.

HOW TO
PROCEED

To incorporate or purchase a company the following documentation should be provided:

01

A completed application form signed by the company or by the representative

03

A personal bill, which is less than 3 months old from the date of the application

02

Copy of valid passport

04

Payment of our fees

Note: additional documents may be required depending on the certain offshore bank.

Set-up time: From the moment, we are in possession of all required documents:

3 days

Incorporation of
a company or purchase
of an existing company

15 days

Delivery of the original
company documents

3 weeks

Offshore Bank: offshore
bank account opening